Hrm Practice [square Textile Ltd]

EXECUTIVE SUMMARY Square Textile Ltd. started its operation in 1997. It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. The business lines of Square Textile Ltd. are manufacturing and marketing of yarn. Its factory is located in Gazipur , Dhaka. The manufactures 100% Cotton Ring Span Yarn or Hosiery , 100% Cotton OE Rotor For Hosiery and Knit Fabrics for 100% export oriented readymade Garments Industry. The strategic Goals and Objectives of the Company are to strive hard to optimize profit though conduction and transparent business operations and to create more competitive in the internal and external market. In home, customer of Square Textile Limited are export oriented readymade Garments Industry. The Company also exports its products to the market of Europe & USA . The export sells increased by 19% in 2003 over the previous year. Competition level is increasing both in local and abroad market . Competition will be more stiff after 2005 when multifiber agreement will be phaced out. Among the other foreign competitors Srilanka , China Pakistan and India are prominent. Square is one of the biggest employees in Bangladesh. It has a personnel and administrative department . The total number of employees are 1223. For the employees there are systematic in house training in home and abroad . The managing director, the CEO is the head of the executive management team . Below in there are directors , executive directors and general manager. Under the direct super vision of the general manager a number of departments are controlled. The Company is going through continuous growth in production . The total production increased year on year basis at the rates of 0.43% and 1.467% during 2002 and 2003 respectively . The Company’s operations are out on a aggregate basis and are managed as a single opportunity segment . The Company uses Computer Aided Design (CAD) , Computer Aides Spreading (CAS) and Computer Aided Manufacturing (CAM) in its plant to increase the overall efficiency and productivity.

OBJECTIVE: The broad objective of this report is to provide an overview of HRM practice of Square Textiles Ltd. The specific objectives of this report are : • To provide Company overview • To provide market overview and analysis • To reveal operational, management and HRM planning. • Discuss all HRM practice METHOLODGY: To prepare this report we have collected data from different published materials. Then we have conducted a secondary study. After that we have prepared a questionnaire and took interview one

of the executive serving in this Company. We also collect data from internet .This way we collected primary data. Thus we have used both primary and secondary report to prepare this report. INTRODUCTION: This report is prepared as a requirement of the course “Seminar in Human Resource Management.” We selected Square Textiles Ltd. Working on this organization we came to know various Kind of HRM practice which are use here. Though it is a textile, it has proved itself in the related industry as a major competitor. In this report we have followed the guidelines provided by the teacher. Here we have tasked not only the HRM practice but also the marketing, management, finance and operational area of the Company. 1.0 COMPANY OVERVIEW 1.1 ABOUT COMPANY: Square Textiles Ltd. started its journey by establishing the first unit in 1997. One year later the second unit was established. Square Textile is a subsidiary company of Square Group .The Company was incorporated as a public limited company in the year of 1994. The operation was started in 1997.It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. Within a very short time of span the company achieved some significance success. Square Textile receives OekoTex standard 100 and ISO-9002 certificates in the year 2000. Authorized capital of the company is tk. 1000 million. It’s paid- up capital is tk. 251.90 million. 1,223 employees are working in this organization. The business lines of Square Textiles Limited are manufacturing and marketing of yarn. The factory is located in Saradaganj, Kashimpur, Gazipur, Bangladesh. Its office is located at Uttara in Dhaka

1.2 MISSION STATEMENT: The mission statement of Square Textiles Limited is “Our mission is realization of vision through maximum production of goods and services strictly on ethical and moral standards at minimum costs to the society ensuring optimum benefits to the shareholders and other stakeholders.” This mission is envisioned by the concept of business which ensures well being of the investors, stakeholders, employees and members of the society which will create new wealth in the form of goods and services.

1.3. KEY PRODUCT / SERVICES: As stated earlier the business line of the company is manufacturing and marketing of yarn. It manufactures: • 100% Cotton Ring Span Yarn For Hosiery • 100% Cotton OE Rotor Yarn for Hosiery • Knit Fabrics for 100% export oriented readymade Garments Industry. It also performs the following services:• Dying & Post Mercerization. • Fabric Dying

The final output is marketwise by Square Fashion Ltd. In Square Textile Limited two types of products are produced in two different units. These are as follows: Unit 1: Combed and Carded Yarn from a count range of Ne.10 to Ne.80. Unit 2: Combed Ring Yarn from a count range of Ne.20 to Ne.40. In Square Spinning Ltd. 100% Cotton Carded and Combed Yarn in the count range of Ne.16 to Ne.30 are produces. Finally in Square Fashion’s Ltd. Readymade Knit Apparels like T-shirts, Polo shirts, Tank tops, Pajamas, Sport wear, Under garments, Men’s & Ladies fashion wear , Kids wear etc

1.4 STRATEGIC GOALS & OBJECTIVES: The company sets the following objectives for it to achieve: • To strive hard to optimize profit through conduction of transparent business operations within the legal and social framework with malice to none and justice for all • To create more jobs with minimum investments • To be competitive in the internal as well as external markets • To maximize export earning with minimum imported in-puts • To reduce the income gap between top and bottom categories of employees. Thus the company focuses to pole-star its mission that fulfill the objective with emphasis on the quality of the product , process and services blended with good – governance that help build the image of the most enable corporate – citizenship at home and abroad . The company wants to produce such society friendly goods and services that go to satisfy the wants of all the relevant party without disturbing or damaging the socio- economic and ecological, balance of the mother earth and the process of human civilization leading to peaceful co-existence of all the leaving beings. The company always strives for top quality products at the least cost reaching the lowest rungs of the economic class of people in the country. The company values its obligation to the greater society as well as it strives to protect the interests of it’s shareholders and to ensure highest return and growth of their assets. 2.0 MARKETING OVERVIEW 2.1 POTENTIAL CUSTOMER: The target market for products produced in Square Textiles Ltd. and Square Spinning Ltd. is Export Oriented Readymade Garments Industry. Readymade Garments exporter that is Knit Fabrics, Sweater and Denim manufacturer. In Bangladesh Beximco Kitting, Grameen Knitwear, Shasha Denim, Knit Concern etc are the customers. Target market for products produced in Square Fashion Ltd. is Europe and U.S.A. Square Textiles does not direct sales in overseas market but sometimes India, Pakistan & other countries take their yarn.

2.2 SIZE & GROWTH OF MARKET: The Company’s marketing operations continued its emphasis on export sales over the years as depicted below:

Year - 2006

Year - 2005

Year - 2004

(a) Quality sold (Kg) •

Local sales

•

Export Sales

•

Total Sales

99,800 (0.7%) 14,554,342 (99.3%) 14,654,142 (100%)

527,903 (3.7%) 13,817,314 (96.3%) 14,345,217 (100%)

539,417 (3.9%) 13,129,599 (96.1%) 13,669,016 (100%)

9,455,588 (0.4%) 2,093,214,675 (99.6%) 2,102,670,263 (100%)

32,576,936 (1.8%) 1,756,441,450 (98.2%) 1,789,018,386 (100%)

46,956,494 (2.3%) 2,029,968,545 (97.7%) 2,076,925,039 (100%)

(b) Sales Revenue ( Taka ) •

Local Sales

•

Export Sales

•

Total Sales

The above figures show that the export sales increased by 19% in 2006over the previous year with greater exposure to international market scenario and risk. 2.3 COMPETITOR ANALYSIS: Only in few years back textile sector in Bangladesh was left behind but current scenarios is different. In recent years a mentionable figure of money has been invested in this industry. Government is also encouraging this sector. Government is making some favorable policies and minimizing the regulations, so that this sector can be grown up. Among the domestic companies Square is one of the leading one. The other potential competitors are Padma Textiles, Shamim Textile etc. Competition will be severe after 2005, that is, during the post multifiber agreement period. World market will be Quota free at that time. So Bangladesh will have to compete with countries like Srilanka, China, Pakistan, Vietnam etc. 3.0 OPERATIONAL PLAN: The Company’s installed capacity during the year 2006 remained at the same level of the previous year at 59,472 spindles 768 Rotor heads with production capacity (at average 30s/10s counts) as follows:

(1) Spindles/Rotors: (a)Installation: No. of Spindles installed No. of Rotor installed (b)Operation No. of Spindles operated No. of Rotor head operated (2) Production Capacity Installed: At Equivalent 30s Count

2006

2005

2004

59,472 768

59,472 768

59,472 768

59,472 768

59,472 768

59,472 768

11,005,000

10,796,424

10,796,424

At Equivalent 10s Count Total (3) Operating Efficiently (%) 30s output 10s output Total

2,204,392 13,209,392

2,204,392 13,000,816

2,204,392 13,000,816

99.26 91.41 97.95

99.02 92.36 97.89

97.49 97.41 97.48

The above statistics depict a picture of continuous growth in production and production efficiency which has been achieved by the production – addicted management at the factory level as well as the top. The total production increased year-on-year basis at the rates of 0.43% and 1.67% during the years 2002 and 2003 respectively. The Company’s operations are carried out on an aggregate basis and are managed as a single operating segment. Accordingly the Company operates in one segment of developing manufacturing and marketing of cotton / mixed yarn for human as well as industrial use. Besides, to increase efficiency the company uses the following methods : • Computer Aided Designing (CAD) A complete designing section. For computer aided designing equipped with GERBER & INVESTRONICA systems. For marker making 06 different work stations with digitizing board and full width pattern plotter. • Computer Aided Spreading (CAS) Computer Aided Spreading (CAS) 03 nos. cloth spreader from GERBER & IMA , 4*30 meter long air floating table. • Computer Aided Manufacturing (CAM) 03 nos. sophisticated LASER guided cutting machine from GERBER &INVESTRONICA systems. The Company has future plan to expand its operation plan in yarn twisting doubling. 4.0 MANAGEMENT Management: The entire management process comprises the following units:

4.1. Executive Management: The Managing Director, the CEO is the head of the Executive Management Team which comprises senior members of the Management Apparatus. Within the limits of delegated authority and responsibility by the Board of Directors , Executive Management operates through further delegation of authority at every echelon of the line management . The executive Management operates within the framework of Policy & Planning strategies set by the Top Management with periodic performance reporting for guidance . The Executive Management is responsible for preparation of segment plans / sub – segment plans for every profit centers with budgetary targets for every items of goods & services and are held accountable for deficiencies, with appreciation for outstanding and exceptional performances . These operations are continuously carried out by the Executive Management through series of Committees , sub – Committees ,Committees & standing Committees assisting the line management .

4.2.Management Committee: Comprising top executives , deal with entire organizational matters.

4.3.Standing Committee: Standing Committee comprises the following committee: 4.3.1. Audit Committee: • Internal Audit Committee • ISO Audit Committee • Social / Environment Committee • Performance Evaluation Audit Committee 4.3.2. Employment Relations Committee: • Remuneration Committee • Work Environment Committee • Performance Evaluation Audit Committee 4.3.3. Management Committee: • Product Planning & Development Committee • Quality Control & Research Committee • Production & Inventory Management Committee • Export Promotion Committee 5. Human resource management 5.1.Human resource planning Square has a personal and administrative Department . Square is one of the biggest employers in Bangladesh. The total number of employers in Bangladesh . The total number of employees is 1,223. For the employees there are systematic in house training in home and abroad . To motivate the employees, along with salary and benefits the company provides various facilities like free meals , free transportation , 24 hour medical center , on site sports . Production and accommodation facilities includes full time supply of safe drinking water, adequate lighting and ventilation facilities from sheet.

5.2 HR Practices of SQUARE textile Recruitment Training Performance Management Labor relation Employee relation Job analysis Job design Selection Development

Incentives Benefits

5.2.1 Recruitment and Selection process in SQUARE

Recruitment is the process trough which the organization seeks applicants for potential employment. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that will help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing will have a direct impact on the types of employees that it seeks to recruit and selection.

Source of recruitment There are two kinds of source SQUARE uses for recruitment .They are 1. External source 2. Internal source. We try to discuss all relative sources which are used for recruitment in SQUARE.

1. Internal source SQUARE thinks that current employees are a major source of recruits for all but entry-level positions. Whether for promotions or for ‘Lateral’ job transfers, internal candidates already know the informal organization and have detailed information about its formal policies and procedures. Promotions and transfer are typically decided by operating managers with little involvement by HR department.

1.1Job-posting programs HR departments become involved when internal job openings are publicized to employees through job positioning programs, which informs employees about opening and required qualifications and invite qualify employees to apply. The notices usually are posted on company bulletin boards or are placed in the company newspaper. Qualification and other facts typically are drawn from the job analysis information. The purpose of job posting is to encourage employees to seek promotion and transfers the help the HR department fill internal opening and meet employee’s personal objectives. Not all jobs openings are posted .Besides entry level positions, senior management and top stuff positions may be filled by merit or with external recruiting. Job posting is most common for lower level clerical, technical and supervisory positions.

1.2 Departing Employees An often overlooked source of recruiters consists of departing employees. Many employees leave because they can no longer work the traditional 40 hours work week .School, child care needs and

other commitments are the common reason. Some might gladly stay if they could rearrange their hours of work or their responsibilities .Instead, they quit when a transfer to a part-time job may retain their valuable skill and training. Even if part-time work is not a solution, a temporary leave of absence may satisfy the employee and some future recruiting need of the employer.

2. External source When job opening cannot be filled internally, the HR department of SQUARE must look outside the organization for applicants. We discuss all the external source of recruitment at bellow:

2.1 Walk-ins and Write-ins: Walk-ins are some seekers who arrived at the HR department of SQUARE in search of a job; Writeins are those who send a written enquire .both groups normally are ask to complete and application blank to determine their interest and abilities. Usable application is kept in an active file until a suitable opening occurs or until an application is too old to be considered valid, usually six months.

2.2 Employee referrals: Employees may refer job seekers to the HR department .Employee referrals have several advantages .Employees with hard –to –find job skill may no others who do the same work. Employees referrals are excellent and legal recruitment technique, but they tend to maintain the status quo of the work force in term of raise , religions , sex and other characteristics , possibly leading to charges of discrimination.

2.3 Advertising Want ads describe the job and the benefits, identify the employer, and tell those who are interested how to apply .They are most familiar form of employment advertising .for highly specialist requites, ads may be placed in professional journal or out of town newspaper in areas with high concentration of the desired skills

Example: General Manager- production (ref: PM) -Age: 28-35 years; Graduate with specialization in garment mfg technology from NIFT or equiv. -Minimum 10 years experience in similar position of a unit with a minimum of 1000machines. -Must have detailed hands on knowledge of industrial engineering. We offer competitive salary which is commensurate with experience and qualification. If you aspire to an exiting and rewarding career , send your detailed resume, quoting your present and expected salaries to jobs.

2.4 Internet Now today no body thinks anything without internet. So SQUARE give their advertise at internet.

Example: WWW.bdjobs.com www.square.bd.com 5.2.2 Training and Development program of SQUARE textile Training is a process of learning a sequence of programmed behavior. it is application of knowledge. It gives people an awareness of the rules procedures to guide their behavior. It attempts to improve their performance on the current job or prepare them for an intended job. Development is a related process. It covers not only those activities which improve job performance but also those which bring growth of the personality; help individuals to the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and women. In organizational terms, it is intended to equip person to earn promotion and hold grater responsibility.

There are many types of method practices in SQUARE .we discuss that method at bellow: On the job training On the job training is a training that shows the employee how to perform the job and allows him or her to do it under the trainer’s supervision On the job training is normally given by a senior employee or a manager like senior merchandiser or a manager. The employee is shown how to perform the job and allowed to do it under the trainer’s supervision.

Job rotation Job rotation is a training that requires an individual to learn several different some in a work unit or department and performer each job for a specified time period. In job rotation, individuals learn several different job within a work unit or department. One main advantages of job rotation is that it makes flexibilities possible in the department. When one employee like junior merchandiser absence another merchandiser can easily perform the job.

Apprenticeship training Apprenticeship training provides beginning worker with comprehensive training in the practical and theoretical expect of work required in a highly skilled occupation. Apprenticeship program combined of the job and classroom training to prepare worker for more than eight hundred occupation such as computer operator, sewing technician.

Length of selected apprenticeship courses of SQUARE Occupation 1. Quality control manager

length (months) 13

2. Quality control officer

15

3. Cutting Astt. Manager

7

4. Packing Astt. Manager

7

5. Ware house Astt. Manager

5

6. Production officer

3

7. Sewing technician 8. Sewing Supervisor

5 5

Classroom training Classroom training is conducted off the job and probably the most familiar training method .It is an effective means of imparting information quickly to large groups with limited or no knowledge of subject being presented. It is useful for teaching factual material, concepts principle other theories .portion of orientation programs, some expects of apprenticeship training and safety programs are usually presented utilizing some form of classroom instruction. More frequently however, classroom instruction is used for technical, professional and managerial employee

Development of the human resources The long term development of human resources as distinct from training for a specific job is of growing concern to HR departments of SQUARE .Throw the development of current employees the department reduces the company’s dependents on haring new workers .if employees are developed properly the job openings found throw HR planning are more likely to be filled internally promotions and transfers also show employees that they have a career not just a job. The employee benefits from increased continuity in operations and from employees who fail a greater commitment. HR department is also an effective way to meets several challenges including employee obsolescence, international and domestic diversity, technical challenges. Affirmative action and employee turn over. By meeting these challenges the department can, maintain an effective workforce.

Steps in the Evaluation of training and development Evaluation criteria > pretest > trained or developedworkers > posttest > transfer to the job > follow-up studies. 5.2.3 Performance Management Performance appraisal is the process of assessing employee’s past performance, primarily for reward, promotion and staff development purposes. ‘Performance appraisal (is) a process that identifies, evaluates and develops employee performance to meet employee and organisational goals.

Performance Appraisal doesn’t necessarily use to blame or to provide a disciplinary action.Previous management theories used to view performance appraisal as a stick that management has introduced to beat people. Performance appraisals are now more clarified and they concentrate on developing organizational strengths and employee performance.

Purpose of Performance Appraisal in SQUARE To review past performance To assess training needs To help develop individuals To audit the skills within an organization To set targets for future performance To identify potential for promotion To provide legal & formal justification for employment decision To diagnose the hidden problems of an organization

Performance Appraisal Process Who Appraises • • • • • •

Supervisors Subordinates Peers Clients/customers Self appraisal 180/360 degree approach

Approaches to measuring performance in SQUARE textile There are various kind of method for measuring performance appraisal. But we get information that SQUARE uses only three type of performance method. These are at below: 1. 360- degree feedback 2. Experience based.

We describe those at below: 1.360-degree feedback One currently popular methods of performance appraisal is called 360-degree feedback. With this method managers peers, suppliers or colleagues are ask to complete questionnaire. The questionnaire are generally lengthy .

2. Experience based SQUARE measure the performance of employee by experience. For example MR. X has been working in SQUARE for three years and MR. Y has been working in SQUARE for two years. So SQUARE favor MR. X for his more experience. 5.2.4 Employee relation

Employers and employees each have their own sets of needs and values, and successful relationship between these two sides requires that some sort of balance be struck. This balance often takes the form of a psychological contract, an understood agreement between employer and employees that defines the work relationship. This contract with or without support of a formal collective bargaining, agreement influence the outcome achieve by each side. SQUARE group the various into three channel categories those are 1. Employee safety 2. Employee health 3. Employee working condition

1. Employee safety SQUARE provide the employee safety .It ensure the all kinds of job safety such as insurance of each employee not this it provide insurance to the labor. 2. Employee health Free medical checkup, provide health card and also provide necessary medical facilities for each employee. 3. Employee working condition The working condition of employee is very hygienic SQUARE is ISO 9001-2000 Certified company

5.2.5 Job analysis Job analysis is the procedure for determining the duties and skill requirement of a job and the kind of person who should be hired for it . The supervisor or HR specialist of SQUARE normally collects one of the following types of information: Work activities

First he or she collects information about the job actual work activities such as marketing, sewing, production. This list also include how, why and when the worker performance each activity. Education and qualification Collects the information about education background and qualification. Experience Experience must be needed for any job in SQUARE.

Sample of job analysis of SQUARE: Quality control manager Qualification Master in any subject Bachelor/diploma in textile and clothing or related discipline will be given preference Must have at least 7 years practical experience experience in similar position in any garments factory.

Cutting Astt. Manager (cum in-charge) Qualification Masters/ bachelor in any subject preferably commerce. Bachelor/diploma in textile and clothing or related discipline will be given preference Must have at least 7 years practical experience experience in similar position in any garments factory.

Ware house Astt. Manger Qualification Masters/ bachelor in any subject preferably commerce. Bachelor/diploma in textile and clothing or related discipline will be given preference Must have at least 5 years practical experience experience in similar position in any garments factory

Production Officer (Sewing)

Qualification Graduate /HSC Must have at least 3 years practical experience in similar position in knit garments. Sewing Technician Qualification Graduate /HSC Must have at least 5 years practical experience in similar position in knit garments.

Experience and skill for all above jobs: Candidate must have experience to work with world reputed buyers Good writing and communication both in Bengali and English Should be capable of making QA reports on daily basis Computer literacy in MS world , Excel , e-mail etc. 5.2.6 Job Design Job design is the process of structuring work and designating the specific work activates of an individual or group of individuals to achieve certain organizational objectives. The job design can generally be divided into three phases: 1. The specification of individual task. 2. The specification of the method of performing each task 3. The combination of individual tasks into specific job to be assign to individual

Organizational considerations for job design Effectiveness In the context of job design, to remain effective, organizations may have to redefine jobs, monitoring, and using technology so that the firm can even compete against giant rivals. Efficiency Maximum outputs through minimum inputs of time, effort and other resources. In the context of job design, efficiency in time, effort, labor costs, and training should be done accordingly.

Technological Considerations

Task Interdependence The dependence of one task from another is task dependence. In this context, the task interdependence can be high or low depending on the product or service. Technical constraints Scarcity of machines are constraints, which in turn leads to the increase and decrease of production. Ergonomic constraints Greek word where Ergo = Work & Nomos = Laws, i.e Laws of work. Optimal productivity requires a relationship between the worker and the work, thus designing a job needs this consideration.

Employee considerations Skill variety Variety refers to the use of different skills and talents to complete an array of work tasks and activities. Autonomy Autonomy refers to the freedom and independence to plan and schedule the work and determine the procedures used to carry it out. Task identity Task identity means doing something from beginning to end rather than just part of it. Task significance It is the degree to which a job has substantial impact on an organization. Feedback Feedback is the degree to which employees can tell how well they are doing based on information from the job.

Environmental considerations Social expectations In designing jobs, the surrounding social expectations must be considered to avoid possible worker dissatisfaction. Workforce availability Job requirements should be balanced against the availability of the people who are required to do the work.

Work practices Work practices are set methods of performing work. These methods may arise from tradition or the collective wishes of employees. 5.2.7 Incentives Compensation fluctuates according to – A pre-established formula – Individual or group goals because group goals are different from individual goals – Company earnings Incentives adds to base pay It controls costs because the employee is being paid for his/her extra effort and for the benefits brought to the organization. Motivates employees Incentive Pay Categories Individual Group Company-wide

Individual incentive plans – – – – –

Quantity of work output (How many units produced) Quality of work output (What was the quality of the product or service being produced or served) Monthly sales (How much sales was generated) Work safety record (How many hazard or errors are being reduced. Work attendance (If the absent is reduced or attendance is good)

Group Incentive Performance Measures Group incentive plans – Customer satisfaction – Labor cost savings – Materials cost savings – Reduction in accidents – Services cost savings Company-Wide Performance Measures Company-wide incentive plans – Company profits – Cost containment/prevention

– –

Market share Sales revenue

Individual Incentive Plans (Piecework plans) • Awards based on individual production vs. company standards • Awards based on individual performance standards using objective & subjective criteria • Quantity and / or quality goals

Advantages and disadvantages of Individual Incentive Plan • Advantages – Helps relate pay to performance – Promotes equitable distribution of compensation – Helps retain best performers – Compatible with individualistic cultures and societies • Disadvantages – May promote inflexibility – Unrealistic standards may hamper employee motivation – Setting performance standards is time consuming – Factors beyond employee’s control may affect outcomes – Factors not rewarded may be overlooked

Group Incentive Plans • Rewards employees for their collective performance • Group incentive use has increased in industry • 2 types – Team - based or small group – Gain sharing

Company-Wide Incentive Plans • Rewards employees when company meets performance standards • 2 Types – Profit sharing plans – Employee stock option plans Competitive Strategies • Lowest - cost – Lower output costs per employee – Individual & group incentive plans – Behavioral encouragement plans

• Differentiation – Unique product or services – Creative, risk - taking employees – Long - term focus – Team - based incentives 5.2.8 Benefits of SQUARE Employee benefits & services were formerly known as fringe benefits and these benefits were primarily the in-kind payments employees receive in addition to payments in the form of money. In addition to paying employees fairly and adequately for their contributions in the performance of their jobs, organizations assume a social obligation for the welfare of employees and their dependents Employee benefits are usually inherent components of the non-compensation system are made available to employees that provide: – Protection in case of health & accident – Income upon retirement & termination

These benefits are components that contribute to the welfare of the employee by filling some kind of demand.

Legally required benefits of SQUARE • Social Security – Social security benefits include the general benefits like unemployment insurance & benefits, old age insurance, and Medicare facilities. • Workers’ Compensation – Worker’s compensation includes the compensation when an employee becomes injured or disable due to extreme working conditions or while working at the job site. • Family & Medical Leave – Family leave includes the compensation continuation during the family leave such as maternity or paternity leave and other family leave. • Old age, Survivor, Disability Insurance requirements for getting compensation: – Earn 40 quarters of credit, or – Be employed for 10 years – Be age 62 for partial benefits – Be age 65 for full benefits – Now the age has been extended to age 67 because more and more workers are retiring late. – Widow aged 60 +

Medicare

Depends on the country’s policy, medicare facilities are generally government services to citizens.Organizations add some value to medicare facilities. In some countries medicare is financed together by employees’ tax, employers and the government. Provided insurance coverage for – Hospitalization - Covers inpatient & outpatient hospital care & services. – Major doctor bills – Charges of visiting a doctor or specialist. – Prescription drug costs. – Provides unlimited in-home care in certain situations.

Workers’ Compensation • Workers’ compensation is a legally required benefit is included in the compulsory disability laws of many countries. Mostly, employer is seen liable regardless of the fault. • Objectives of Workers’ compensation: – Provide income & medical benefits – Reduce litigation – Eliminate legal fees & time – Encourage employer safety – Promote accident study & avoidance • Workers’ compensation claims – Injury – Occupational disease – Death • Workers’ compensation benefits – Medical services – Disability income – Death benefits

Discretionary Benefits • Discretionary benefits are judgment based benefits that the organization provides to its employees. These benefits are not legally required benefits but enhances organizational culture and corporate image. • Benefits include: – Protection programs – Pay for time not worked – Other services

Pay for time not worked • Holidays • Vacations • Funeral leave • Marriage leave

• Sick leave • Stress leave • Blood donation or welfare work • Personal leave • Sabbatical leave/ For Muslims, leave after death • Other religious leaves such as pilgrimage or preaching 6.0 FINANCING 6.1. Financial Result: The Company’s operating financial results, as compared to the previous year, are summarized hereunder: (Taka) Year 2006 Turnover 2,102,670,263 Cost of Goods Sold 1,737,055,759 Gross Profit 365,614,504 Operating & Financial Expenses 175,524,220 Operating Income 190,090,284 Other Income 225,844 Net profit Before WPPF 190,316,128 Contribution To WPPF 9,062,673 Net Profit (BT) 181,253,455 Provision for Income Tax 13,359,728 Net Profit (AT) 167,893,727 Gross Margin 17.39% Net Margin 7.98% Earning per Share (EPS) 6.67 Outstanding Shares 25,190,000 Face value Per share (TK) 10

(Taka) Year 2005

(Taka) Year 2004

1,789,018,386

2,076,925,039

1,500,281,590 288,736,796

1,676,690,068 400,234,971

197,835,510

217,687,872

90,901,286

182,547,099

663,215

912,083

91,564,501

1,83,459,182

4,360,214 87,204,287

8,736,152 1,74,723,030

5,751,104 81,453,273 16.14% 4.55%

174,723,030 19.27% 8.41%

3.23

6.94

25,190,000

25,190,000

10

10

The gross margin rose to 17.39% from the level of 16.14% in 2006. As the operating & financial expenses declined , net margin also rose 4.55% in 2005 to 7.98% in 2006. Net Profit (AT) has been increased due to cost control measures , procurement strategies and favorable export prices in the international market.

7.1 Products: In two units of Square Textiles Ltd. The following products are produced : In Square Knit Fabrics Ltd. Product range Engineering stripe and semi jacquard, plain , pique , Four Neddle structure , Crepe rib , Interlock , Drop needle , Crossmiss , Milano rib , etc. In Square Fashions Ltd. Following types of products are produced T-shirts & Polo- shirts, Tank tops , Pajamas, Sport wear , Under garments , Mens & Ladies fashion wear , Kidswear etc.

7.2 Price:

The unit selling prices over the years varied substantially as shown below:

Local sales Export Sales Total sales (average)

2006 94.75 143.84 143.49

2005 61.71 127.12 124.71

2004 87.12 154.62 151.94

The above indicate that the local and export selling prices increased by 53.54% and 13.14% respectively during the year 2006 over the year 2005after gradual decline during the years 2004 and 2003 over the year 2001. the increase is primarily ascribable to the international situation. 7.3 Place : Export oriented ready made garments industry operating in Bangladesh are the main purchaser of products of Square Textiles Ltd. The size of export oriented RMG industry is fairly large in Bangladesh . So there is a huge market for Square Textiles Ltd. In Bangladesh. Moreover products of Square Fashions Ltd. Are exported to Europe and USA. 7.4 Promotion: Square Textiles Ltd. Does not pursue any rigorous promotional activity . As most of the purchaser are export oriented garments , they don’t need to be promoted . Infact, the buyers themselves are aware enough from where they will get quality products. So there is not much room to pursue. For the UK and USA based market this fact is true as well .

8.0 SWOT ANALYSIS: SWOT analysis means the analysis of strength , weakness, opportunity and threats . For Square Textiles Ltd. It is given below: 8.1 Strength: Square Textiles Ltd. Is a rapidly expending Company . Standing its journey in 1998 it has already doubled the net turnover by the year of 2006. All the units of the factory enjoy highly of machinery are imported from Germany, Switzerland , Italy & japan . As a result it can maintain a smooth rate of production. Well trained human recourses are another strength of the Company . They train up their key personally in the country and abroad . So that the Company can get some competitive advantages over the competitions. The HRM practice is also remarkable . 8.2 Weakness: There are too many departments under the super vision of the general manager which can cause low productivity due to large span of super vision.

8.3 Opportunity: There are bright opportunities for the Company in the overseas market . If is can communicate well and capture a significant market portion in the Europe and USA market, it can get scale of economic. 9.0 FINDINGS AND RECOMMEDATIONS 9.1 Findings: Textile industry is a comparatively new in our country . The size of the industry is still growing. Square Textiles Limited is one of the first movers in this sector. Starting only in 1997 , it has managed to be grown up as one of the country’s leading Textile Company . Its increase turnover has been significantly increasing, since 1997-2007. It is providing employment to a large number of skilled and unskilled people all over the country. The Company contributed an amount of taka 37.892 million to the national exchequer in different forms like Cooperate Income Tax, Advance Income Tax, Ecise, Vat, Import Duties, Taxes, Government Taxes , Stamp Duties, License Fees etc. The Company contributed substantially to the Foreign Exchange Reserve of the country through its export marketing operation. In 2007its net export earning was taka 1021.368 million. 9.2 Recommendations: From the analysis with the organization structure we have seen that its span of super vision is too large. A number of departments report directly to the general manager. If the number were less the efficiency and productivity of the organization might be increased. Quality control department should remain prompt always. So that it can maintain a certain level of standard as per the market demand to capture the foreign market share it should strive more.

10.0 CONCLUSION The flourishment of any industry requires combined efforts and co-operation from several parties . Social , political and macro economic environment play pivotal role in this regard . Though Square Textile is a newly Ventured Company in the respective sector, its growth and expansion is praiseworthy. Its contributing the country and serving the nation in different ways. If it can up hold its much toward advancement, it will be able to set a role model in our country.